PBMs are driving the increase in out-of-pocket healthcare costs for consumers, says NCL

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July 23, 2024

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

WASHINGTON, DC – The National Consumers League (NCL) today submitted a letter to both the Republican and Democratic chairs of the House Committee on Oversight and Accountability expressing concerns about pharmacy benefit managers (PBMs) driving the increase in out-of-pocket healthcare costs for American consumers. The letter was submitted just as the committee was conducting a hearing with top executives from Express Scripts, CVS Caremark, and Optum Rx.

The following statement is attributable to NCL’s Chief Executive Officer Sally Greenberg:

“We are concerned that these anti-consumer practices are putting the profits of insurance companies and their PBMs before patients, local pharmacies, employers, and state governments. Congress has an opportunity to review these corporate practices and work to ensure a reduced market power, thus minimizing the incentives for PBMs to steer patients towards higher-priced medicines, claim higher and higher rebates to fatten their bottom line, and ultimately driving independent pharmacies out of business.”

The full letter can be accessed here.

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About the National Consumers League (NCL) 

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

NCL statement on FTC interim report on PBMs

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July 10, 2024

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

WASHINGTON, DC – The National Consumers League (NCL) today applauds the Federal Trade Commission’s (FTC) interim staff report on prescription drug middlemen, pharmacy benefit managers (PBMs). The report details how PBMs profit at the expense of patients, inflating drug costs and squeezing Main Street pharmacies.

The following statement is attributable to NCL’s Robin Strongin, Senior Director of Health Policy:

“The FTC’s continued investigation into PBMs, and this latest report, shows promising momentum in addressing the high out-of-pocket costs of medicines consumers face. Countless investigations such as this, as well as news coverage, patient stories, and pharmacy closures across the country, prove again and again that PBMs are doing more harm than good. As the report shows, the vertical integration of PBMs has allowed them to rake in profits at the expense of patients and independent pharmacies.

“That said, we also recognize that this interim report and its findings don’t go far enough. It’s well past time to examine and address the overall corporatization of health care, including the vertical integration of the industry. In the current set-up, the biggest winners are the health insurance corporations that own PBMs, doctors, pharmacies and more. The biggest losers? Consumers.

“While NCL is encouraged that the FTC is working to hold PBMs accountable, we also encourage the need for meaningful reform that helps and doesn’t harm consumers.”

The full report can be accessed here.

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 About the National Consumers League (NCL) 

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

NCL’s Child Labor Coalition praises the Biden Administration’s proposed rule to protect indoor and outdoor workers from extreme heat

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July 3, 2024

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

WASHINGTON, DC – The Child Labor Coalition (CLC) strongly supports the Biden Administration’s proposed rule to protect indoor and outdoor workers from extreme heat. The U.S. Department of Labor announced the rule on July 2. The CLC is chaired by the National Consumers League (NCL) and has 37 organizational members, including numerous farmworker organizations and nonprofits. Both the CLC and NCL are members of the national Heat Stress Network, organized by Public Citizen.

Read the full proposed rule.

While the proposed rule does not recommend age-specific guidelines for child or teen workers, they would benefit greatly from OSHA-mandated heat-related safety protections. Extreme heat can lead to heat stroke, injuries, illnesses, and even death.

Exemptions to U.S. child labor law allow children in agriculture to work at age 12, and, in some cases, even younger, and those exemptions allow them to work unlimited hours, when school is not in session.

Reid Maki, director of child labor advocacy at the Child Labor Coalition, emphasizes the dire conditions faced by outdoor workers: “Farm workers perform physical labor in high heats without the benefit of shade. They work long hours under the hot sun with temperatures well exceeding 90 degrees, sometimes over 100 degrees without a break. They risk passing out, heat stroke, and death. We are most worried about children and teens. There is no doubt that putting rules in place will save lives.”

“President Biden and Acting Secretary of Labor Julie Su have taken an important first step,” says Maki. “The proposed rule provides a pivotal opportunity to have a national conversation and develop comprehensive OSHA regulations to protect workers across many industries. We strongly urge the Department to add specific protections for children working in agriculture. We know that children are at increased risk of heat illness.”

The Protect Indoor and Outdoor Workers from Extreme Heat rule proposes several critical measures to address worker safety:

  1. Heat Risk Evaluation: Employers would be required to evaluate heat risks and develop comprehensive plans to mitigate these risks, especially when temperatures exceed 90 degrees.
  2. Rest Breaks and Hydration: Mandatory rest breaks and access to drinking water are key components to ensure workers stay safe and hydrated.
  3. Acclimatization Protocol: Employers must develop protocols to help new employees or those returning from vacation or sick leave adjust to the heat during their first week back.
  4. Heat Illness and Emergency Response Plan: This includes appointing individuals to implement heat emergency procedures, instructions for transporting affected employees to emergency medical facilities, and procedures for responding to signs of heat-related illness or heat stroke.

The proposed rule extends to indoor work environments as well, ensuring that workers in hot indoor settings are also protected. However, the proposed rule specifically excludes professions such as firefighters and emergency response teams.

Employers would also be required to provide training, implement procedures to respond to heat-related illnesses and take immediate action to assist workers experiencing symptoms of heat emergencies.

Summer heatwaves are upon us, and while many of us retreat to air-conditioned spaces, countless workers endure the blistering sun and soaring temperatures. For those laboring in the fields, on construction sites, and in other outdoor environments, extreme heat can be deadly. Record-breaking temperatures across the United States create life-and-death situations for outdoor workers, and each year, thousands of workers suffer from heat-related illnesses and hundreds die.

Whether working indoors or outdoors in high heat, the signs and symptoms of heat-related illness are the same and include weakness, dizziness, headaches, nausea, fevers, overheating, and muscle cramps. According to the Mayo Clinic, workers are encouraged to exercise caution when temperatures are between 80 and 90 degrees (Fahrenheit) and extreme caution when they are between 90-103 degrees. Temperatures higher than that are considered dangerous.

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About the National Consumers League (NCL)

The National Consumers League, founded in 1899, is America’s pioneer consumer organization.  Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad.  For more information, visit nclnet.org.

NCL welcomes the 340B ACCESS Act

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May 30, 2024

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

WASHINGTON, DC – The National Consumers League welcomes the introduction of the 340B Affording Care for Communities and Ensuring a Strong Safety-Net Act (340B ACCESS Act), which makes needed reforms to protect the 340B program from misuse while lowering drug costs for low-income patients. We are particularly supportive of the proposed ban on aggressive debt collection practices as a condition for hospitals participating in the program. Such practices are unacceptable and out of sync with the mission of a safety-net provider.

Just this week the Wall Street Journal featured an article highlighting the aggressive debt collection practices of a rural Kansas hospital that is suing low-income patients over unpaid medical bills. This legislation ensures that hospitals cannot exploit their 340B status to deny patients who need access to charity care and then sue them for medical debt.

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About the National Consumers League (NCL)

The National Consumers League, founded in 1899, is America’s pioneer consumer organization.  Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad.  For more information, visit nclnet.org.

NCL statement on DOJ suit against Live Nation Entertainment

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May 23, 2024

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

WASHINGTON, DC – The National Consumers League (NCL) today hailed the Department of Justice’s (DOJ) reported decision to file an antitrust suit against Live Nation Entertainment, the parent company of Ticketmaster.  

The following statement is attributable to John Breyault, National Consumers League Vice President of Public Policy, Telecommunications & Fraud: 

“In 2010, the Department of Justice decided that allowing Ticketmaster to swallow up its largest competitor could be a net positive for live event fans. The last fourteen years have proven beyond any reasonable doubt that the DOJ’s bet was dead wrong. Today’s action begins the long-overdue process of correcting that error and upholding the law. We will be closely monitoring this case to ensure that the result this time is a fairer and more competitive industry for fans and all the stakeholders in the success of live events.” 

Since 2010, NCL has pursued policies that promote stronger consumer protection policies that benefit live event fans at the local, state, and federal levels. In 2016, NCL was one of the leading advocates for the BOTS Act, federal legislation that outlawed the use of ticket buying “bot” software. Since 2019, the average cost of a concert ticket to the top tours in North America increased from $87 to $104, due in large part to added fees, dynamic pricing, and other factors. NCL’s advocacy has contributed to landmark fan protection legislation in eight states. We continue to speak out in support of pro-consumer ticketing bills like the federal TICKET Act (H.R. 3950), which recently cleared the U.S. House of Representatives on a bipartisan 388-24 vote. 

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About the National Consumers League (NCL)

The National Consumers League, founded in 1899, is America’s pioneer consumer organization.  Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad.  For more information, visit nclnet.org.

NCL applauds Congress’s passage of aviation consumer protection improvements

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May 16, 2024

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

Washington, DC – Yesterday, the House of Representatives passed a bill to reauthorize the Federal Aviation Administration (FAA) through 2028, sending it to the president. The legislation includes a number of wins for the millions of consumers who travel by air every year: airline vouchers cannot expire in less than five years, caregivers can sit with their minor children without paying an extra fee, and passengers will automatically receive a refund if their flight is cancelled.

The measure also strengthens the Department of Transportation’s (DOT) ability to hold air carriers accountable when they break the law by tripling the maximum civil penalty the Department may impose and creating an assistant secretary position for aviation consumer protection.

“The National Consumers League is grateful to the negotiators of this bill for working to improve the flying experience,” said NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault. “Without support from Senator Cantwell, Senator Cruz, Representative Graves, Representative Larsen, and their diligent staff, these important new consumer protections would not have made it to President Biden’s desk.

“We look forward to the president signing the bill into law and a robust enforcement regime from DOT. Particularly, we expect the FAA to act on its mandate from Congress to establish minimum seat sizes on airplanes—a directive Congress has given the agency twice now.”

Unfortunately, Congress missed a significant opportunity to enact structural change in how airlines are regulated. The airline industry still enjoys extraordinary privileges and remains protected from Federal Trade Commission and state government oversight. A tax break for add-on fees remains in place, encouraging air carriers to generate revenue from added charges instead of the base fare. And a provision that would have established bare-bones safeguards around the devaluation of frequent flyer rewards was stripped from the bill.

While there is still work to be done, the flying public undoubtedly secured important wins in this reauthorization. NCL is appreciative of the allies to consumers who championed our priorities on the Hill and we will continue to advocate for passengers as the legislation is implemented in the coming years.

Further reading:

  • Consumer advocates support federal review of air industry’s data collection practices
  • Full list of consumer and public interest advocates’ priorities for the FAA reauthorization
  • Consumer groups call for a moratorium on smaller airplane seats pending FAA safety review

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About the National Consumers League (NCL)

The National Consumers League, founded in 1899, is America’s pioneer consumer organization.  Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad.  For more information, visit nclnet.org.

NCL statement on Senate Reintroduction of Cannabis Administration and Opportunity Act

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May 15, 2024

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

Washington, DC – Last week, Senate Democrats reintroduced legislation to revamp federal cannabis policy. The Cannabis Administration and Opportunity Act aims to legalize cannabis at the federal level, create a new regulatory framework for cannabis, expand research into cannabis’ potential and risks, and more.  The National Consumers League (NCL), the nation’s oldest consumer advocacy organization, has been actively monitoring the growing threats to consumer safety as the market for untested, unapproved cannabis products has exploded. NCL Chief Executive Officer, Sally Greenberg, released the following statement:

“We are grateful to Senators Schumer, Wyden, and Booker for their ongoing leadership in this space and for acknowledging the critical role of FDA in helping to protect public health. As cannabis products have grown in popularity – and most recently, high THC products have perpetuated the market – it is increasingly important that, if cannabis is legalized, our federal policies and regulations are science-based and prioritize public health. We know that cannabis manufacturers often make misleading or even false claims about their products ability to mitigate or even cure various health issues and consequently our leaders must help consumers better navigate this marketplace across the U.S. FDA is best positioned to achieve that outcome. A new report reiterates the need to ensure that FDA has sufficient regulatory tools and resources to mitigate public health risks and that more research be done to better understand the benefits, risks, drug interactions, etc. of cannabis products.”

Learn more about the cannabis consumer market and the path to safe cannabis at cannabiswatch.org.

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About the National Consumers League (NCL)

The National Consumers League, founded in 1899, is America’s pioneer consumer organization.  Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad.  For more information, visit nclnet.org.

NCL expresses concern over Colorado Senate Bill 184, which seeks to impose new tax on car rental consumers

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March 29, 2024

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

Washington, DC – The National Consumers League (NCL) recently sent a letter to Chairwoman Faith Winter of the Senate Transportation and Energy Committee, Colorado State Senate, expressing concern over Senate Bill 184, which seeks to impose a new tax on car rental consumers of up to $3 per day, for the purpose of creating a new rail light line service. NCL does not believe taxpayers should bear the burden of paying for this new service.

The full letter can be found here.

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About the National Consumers League (NCL)

The National Consumers League, founded in 1899, is America’s pioneer consumer organization.  Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad.  For more information, visit nclnet.org.

NCL applauds Biden Administration’s new actions to minimize education costs

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March 15, 2024

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

Washington, DC – Today, the Biden Administration announced new initiatives to reduce unnecessary fees consumers face when enrolled in higher education. The president’s proposed budget and the Department of Education are seeking to eliminate student loan origination fees, which cost consumers over $1 billion each year just to take out a loan; limit exploitative junk fees associated with financial services that colleges may provide through banking partnerships; require colleges to return unused “flex dollars” to students before they expire at the end of a semester; and eliminate restrictions that would prevent students from purchasing textbooks off-campus, where they may be sold at a lower price than the university would charge.

The following statement is attributable to National Consumers League Chief Executive Officer, Sally Greenberg:

“Higher education should be a marker of academic achievement, not something to be foreclosed because of a student’s economic background. If finalized, these new initiatives would reduce financial barriers that prevent many students from obtaining an advanced degree and leave others with years of debt. I urge Congress to fulfill the president’s proposed elimination of loan origination fees and look forward to the finalized rules from the Education Department.”

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About the National Consumers League (NCL)

The National Consumers League, founded in 1899, is America’s pioneer consumer organization.  Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad.  For more information, visit nclnet.org.

National Consumers League condemns legislation in Florida that preempts local ordinances to protect workers from heat exposure

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March 15, 2024

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

Washington, DC – The National Consumers League is condemning a vote by the Florida House of Representatives to approve legislation that will upend Miami-Dade’s proposed local workplace standards requiring drinking water, cooling measures, recovery periods, posting or distributing materials informing workers how to protect themselves, and requiring first aid or emergency responses. The Florida Senate approved the measure yesterday.

This measure rushed through the state legislature ahead of adjournment on Friday, March 8th and will prevent local governments throughout Florida from requiring water, shade breaks or training so workers can protect themselves from heat illness, injury, and fatality.

Reid Maki, director of child labor advocacy for the Child Labor Coalition under the National Consumers League, made this statement:

“Not only is the Florida legislature usurping the duty of local government to protect workers from heat stress in one of the hottest states in America, but by denying workers access to water and protection this Dickensian measure ignores the reality of heat and heatstroke among Florida’s workers. Indeed, hundreds of workers die across the U.S. from heat exposure each year. The legislation also forbids the posting of educational materials to help workers protect themselves from the heat.

NCL has throughout its history worked to eradicate child labor and abusive labor practices, including protecting children in America working in the fields from exposure to heat, dangerous chemicals, and long hours. U.S. law allows children to work at younger ages in the agricultural sector despite its significantly increased danger. It also allows teens to do work known to be dangerous at younger ages—16 versus 18. NCL works to close both of those loopholes and protect children from agricultural dangers and exploitation. These vulnerable teen workers in agriculture are at great risk from heat exposure.

NCL is urging Governor Ron DeSantis to veto this legislation. NCL also urges the United States Congress to enact the Asuncíon Valdivia Heat Illness, Injury and Fatality Prevention Act, which would direct the Occupational Safety and Health Administration to adopt interim heat standards, while the agency continues its years-long slog of adopting a final heat protection rule. NCL is a member of the national Heat Stress Network, which works to protect outdoor works from heat dangers.

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About the National Consumers League (NCL)

The National Consumers League, founded in 1899, is America’s pioneer consumer organization.  Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad.  For more information, visit nclnet.org.